DANDOT CEMENT COMPNY LIMITED

ANNUAL CORPORATE BRIEFING SESSION

For the year ended June 30, 2019

1

Presentation Outlines

Company Briefing1

2

Operating Highlights2

Steps After Acquisition

3

SWOT Analysis

4

Question/Answer Session

6

Acquisition

5 Future Outlook/Projects

7

Company Briefing

Commercial

Production

(1983)

Listing on Stock

Exchanges

(1983)

State Cement

Corporation

Pakistan

(Govt. owned)

(Privatization)

Chakwal Group

(1992)

Three Star Group

(2007)

Gharibwal Cement

(2000)

Calicom Industries (Pvt) Ltd

(2019)

Plant Capacity

1,000 TPD

(Mitsubishi Japan)

Incorporation

(1980)

Company Briefing

Operating Highlights

Profit or Loss 2019 VS 2018

%age

Sales 1,594 100.00% 1,307 100.00% 287 21.97%

Cost of sales (1,937) -121.57% (1,756) -134.37% (182) 10.35%

Gross loss (344) -21.57% (449) -34.37% 105 -23.46%

Distribution cost (9) -0.56% (5) -0.39% (4) 74.48%

Administrative expenses (59) -3.68% (60) -4.60% 1 -2.39%

(68) -4.24% (65) -4.99% (2) 3.64%

Operating loss (411) -25.81% (514) -39.36% 103 -20.02%

Other income 425 26.68% 2 0.15% 423 20908.99%

Other operating expenses (13) -0.79% (31) -2.41% 19 -59.92%

1 0.08% (544) -41.61% 545 -100.23%

Finance cost 609 38.19% (185) -14.17% 794 -428.75%

Profit/(loss) before taxation 610 38.27% (729) -55.78% 1,339 -183.67%

Taxation 15 0.93% 11 0.83% 4 35.53%

Profit/(loss) after taxation 625 39.19% (718) -54.95% 1,342 -186.99%

2019 2018 Variance

… … … … … … … … Rupees In Million … … … … … … … …

Amounts %age Amounts %age Amounts

Net Sales

0

500

1,000

1,500

2,000

2,500

2019 2018 2017 2016 2015

1,594

1,307

1,806

2,347

2,139

Rs.

In

mil

lio

ns

YEARS

Acquisition

In May 2019 the company have been acquired by Calicom

Industries (Pvt.) Limited (CIPL) under the Listed

Companies (Substantial Acquisition of Voting Shares and

Takeovers) Regulations, 2017 and a new board of directors

were appointed. Up to the signing of these financial

statements, CIPL (holding company) has 67,312,925 voting

shares (71% of paid up capital) of the company.

Acquisition

Steps After Acquisition

Steps After Acquisition

• Working capital injection of Rs.492 million

• Rescheduling liability of Bank of Punjab

• Rescheduling liability of Bank Islami Pakistan Limited

• Restructuring of Ex-management liabilities

• Annual maintenance

• Change of registered office

• Workers right sizing

Future Outlook/Projects

The new management would like to address all critical issues head-on and tackle them permanently to lay a solid foundation for futureof this Company. There are two most critical issues; one is thenon-compliance of the current plant to the environmentalstandards and the other is the in-efficiencies in energyconsumption. The resolution of these factors requires acomprehensive Balancing, Modernization and Replacement (BMR)project.

Amid a turbulent market and pessimistic short-term economicconditions, this is a good opportunity to go through this BMRproject, thereby correct our gaps to make the company competitivein all respects. Your company is finalizing the BMR project designand details and will proceed towards securing funding for thisimminent project.

Future Outlook/Projects

SWOT Analysis

Strengths

Quality Raw Material

Ideal Plant Location

Lease License

Land Availability

Weaknesses

Union Agreements

Electricity Cost

Inefficient Production

Low Production level

Opportunities

Rising Demand

Border Distance to India

Power Plant Installation

Threats

High Taxation

Interest rate and inflation

New capacities in pipeline

SWOT Analysis

Q&A

Thank You